Going, going, gone … Jodi Gordon’s Potts Point apartment is for sale. Photo: Simon Alekna
HOME buyers in Sydney’s east and inner west are out in force, with agents reporting a surprising number of early sales.
Traditionally January is a quiet month for sales, but some believe the two interest rate cuts in November and December could be encouraging buyers.
Along with many of last year’s unsold properties finding buyers, there have been cases of freshly listed homes selling within a week. ”We have rarely seen so many truly qualified and cashed-up buyers,” said Di Jones director Gary Sands.
His agency has recorded six sales this year already, with several pending. Among the sales was a three-bedroom semi in Henrietta Street, Waverley, that was listed on January 4 and sold a week later for $1 million.
The others ranged from a two-bedroom apartment with parking in Bondi for $670,000 through to a $1.75 million unit at the Advanx development in Rushcutters Bay.
Bresic Whitney principal Shannan Whitney said lower interest rates could be working their magic. ”We’ve moved 10 properties this year that we couldn’t sell last year, which is encouraging,” Mr Whitney said. ”I definitely think the lower interest rates have helped and now many expect they could even go down further.
”The European situation is still weighing on people’s minds, but there’s a little bit more optimism since the last quarter of last year.”
The senior economist with the Fairfax-owned Australian Property Monitors, Andrew Wilson, said there was always a lag of a couple of months before the market improved after a rate cut.
”Housing affordability is at its best level for a while, with most prices flat over 2011 and interest rates down,” Dr Wilson said. ”So there is a sense of renewed optimism and confidence in the NSW economy, despite some fairly ordinary unemployment numbers this week.”
While auctions do not resume until February, Harris Partners agent Andy Gale watched a trio fight it out for a two-bedroom cottage in Claremont Street, Balmain. It sold on Thursday night for $895,200 to an empty-nester. ”It was a classic silent auction process,” he said. ”We asked the buyers to put in their highest and final offer and the owner made his decision on who to accept.”
There have even been sales this week for higher-priced properties that could not find buyers in 2011, with vendors being realistic about prices.
Goodyer Donnelley exchanged on an early 1980s three-bedroom townhouse in Alton Street, Woollahra, on Tuesday. Australian Property Monitors records show it had sold for $2 million in 2009. It had been for sale since last August and been withdrawn from auction in October. Rather than a hoped-for $1.8 million, the vendor had to settle for $1,725,000.